If your income increases from 30,000 to 35,000 and your ...

[kellyjaisingh]

If your income increases from 30,000 to 35,000 and your consumption increases from 11,000 to 12,000 . your marginal propensity to consume (MPC) is:
 a. 0.2.
  b. 0.4.
  c. 0.5.
  d. 0.8.
  e. 1.0.

Question 2

Causality is clear and mechanical with the quantity theory of money. If M increases because:
 a. V and Q are variable, the price level, P, increases.
  b. V and Q are variable, the price level, P, decreases.
  c. V and Q are constant, the price level, P, increases.
  d. V and Q are constant, the price level, P, decreases.
  e. P and Q are constant, velocity, V, increases.

[underwood14]

Answer to Question 1

a

Answer to Question 2

c

[kellyjaisingh]

Gracias!

[AmberC1996]

TYSM